Step method Prosperous Bank has three support areas (administration, human resources, and accounting) and three revenue generating areas (checking accounts, savings accounts, and loans) Monthly direct costs and the interdepartmental support structure are shown in the following benefits provided ranking Percentage of Service Used by Department Direct Costs Admin Human Resources Accounting Checking Savings Loans Administration $1,296,000 10 10 30 40 10 Human resources 864,000 10 10 30 20 30 Accounting 720,000 10 10 40 20 20 Checking 1,512,000 Savings 810,000 Loans 1,620,000 Compute the total cost for each revenue generating area of the bank using the step method of cost allocation Note Do not round proportions in your calculations round your final answer to the nearest whole dollar Checking Answer Savings Answer Loans Answer Total Answer

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Question: Step method Prosperous Bank has three support areas (administration, human resources, and accounting) and three revenue-generating areas (checking accounts, savings accounts, and loans). Monthly direct

Step method Prosperous Bank has three support areas (administration, human resources, and accounting) and three revenue-generating areas (checking accounts, savings accounts, and loans). Monthly direct costs and the interdepartmental support structure are shown in the following benefits-provided ranking:

Percentage of Service Used by
Department	Direct Costs	Admin.	Human Resources	Accounting	Checking	Savings	Loans
Administration	$1,296,000		10	10	30	40	10
Human resources	864,000	10		10	30	20	30
Accounting	720,000	10	10		40	20	20
Checking	1,512,000
Savings	810,000
Loans	1,620,000

Compute the total cost for each revenue-generating area of the bank using the step-method of cost allocation.

Note: Do not round proportions in your calculations; round your final answer to the nearest whole dollar.

Checking	Answer
Savings	Answer
Loans	Answer
Total	Answer

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